Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Thursday, December 17, 2015
Stock Market Positive Expectations Following Interest Rate Decision / Stock-Markets / Stock Markets 2015
Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook is now neutral, and our short-term outlook is neutral:
Intraday outlook (next 24 hours): neutral
Short-term outlook (next 1-2 weeks): neutral
Medium-term outlook (next 1-3 months): bearish
Long-term outlook (next year): bullish
Thursday, December 17, 2015
Stock Market S&P 500 Rally Might Prove Short-Lived / Stock-Markets / Stock Markets 2015
To much fanfare, the Federal Open Market Committee made the decision to raise interest rates by 25 basis points for the first time since 2006 in a unanimous decision approved by all voting members. This marks the beginning of a tightening cycle that forecasts another 4 rate increases over 2016, putting rates near 1.50% by the end of 2016 should the United States economy avoid a recession. When looking at corporations and the main sources of growth over the past few years, interest rate normalization is largely a negative indication for equity valuations as it diminishes the viability of cheap borrowing to finance buybacks. Although the announcement of a hike was forecast to dent equity benchmarks, especially the S&P 500, the cash session saw a 1.45% rally in the index despite the headwinds approaching.Read full article... Read full article...
Thursday, December 17, 2015
Risk ON? Risk OFF? Find Out Where Your Money Lies / Stock-Markets / Financial Markets 2015
Dear Investor,
I have an urgent new report to share with you today, so let's dive right in ...
Here is the opening paragraph of the just-published, subscriber-level report from our friends at Elliott Wave International, the world's largest independent financial forecasting firm.
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Thursday, December 17, 2015
Stock Market Finally .25... Bullish Statement.... Gradual.... Bull-Bear At 8%.... / Stock-Markets / Stock Markets 2015
The world has waited for years it seems for that first rate hike, since the economy was supposedly improving. Month after month, and report after report, for well over a year the market couldn't decide whether Fed Yellen would finally raise rates that quarter of a percent. You would think it would be slam dunk if things were rosy, but we all knew they really weren't, so she refused to raise. ISM Manufacturing Report is in decline. Services going the wrong way as well. It's hard to raise rates when the economy can't get out of its own way. The pressure kept mounting, however, as the Yellen knew the street wanted to see some confidence, since she kept saying that things were getting better. She finally did the dirty deed this afternoon. I'm sure she feels mixed, since we are contracting on manufacturing. It's truly unheard of to raise rates, even though they were at zero, in a declining economy. The key to the whole thing was the statement after the raise.
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Thursday, December 17, 2015
SPX Sports a 7-point Reversal Pattern / Stock-Markets / Stock Markets 2015
SPX has now formed a seven-point reversal, normally seen as a five-point reversal. This is typical when there exists a need for delay combined with a high degree of emotion in the market. It appears to be challenging the Intermediate-term resistance at 2073.31.
The sell signal is reaffirmed when SPX has fallen again beneath the 200-day Moving Average at 2067.31. Confirmation that the sell signal is still supportable when SPX falls beneath today’s open where the Orthodox Broadening Top trendline lies at 2045.
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Wednesday, December 16, 2015
Junk Bond Market Crash Stock Market Warning! / Stock-Markets / Stock Markets 2015
We are approaching the most anticipated and crucial week of the past seven years, and the global markets have been selling off. Last week, saw crude oil, junk bonds and the stock market competing with one another, while on their way down. Is there a connection between the three, or is it just a co-incidence that all three have fallen concurrently? Is the fall of one market, signaling a warning sign to the other(s)?
If you have any interest in either market, by way of investments, or if you are planning to become a part of the market, this article is for you. The junk bond markets are flashing a red signal, therefore, you should heed the warning.
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Wednesday, December 16, 2015
Stock Market Expanding Bubbles / Stock-Markets / Stock Markets 2015
Thursday, 12/10/15, stock indices rose because (so all the pundits reckon) Fed Chair Yellen made a speech reinforcing her determination to begin raising interest rates on December 16. Friday, 12/11/15, the next day, stock indices plummeted because, well, for the same reason. In bubbles, indices can rise or fall for exactly the same reason.
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Wednesday, December 16, 2015
Fed Interest Rate Hike Stock Market Crash Bear Apocalypse? / Stock-Markets / Stock Markets 2015
It's D-day for the stock market according to the bears when an Fed interest rate hike of 0.25% is expected to at least confirm a stocks bear market is already underway and even said will herald a stock market apocalypse crash, 'End Times', which has been consistently re-iterated by the consensus and BlogosFear since the August stocks plunge (correction). Though as the below chart illustrates that reality does not match the intensity of bear market rhetoric, that of double and triple tops, head and shoulder patterns, 5th waves and domed houses, all utilised each month as irrefutable proof with religious zeal that the stocks bull market is finally over, that this month has coalesced around today's FOMC meeting decision, with the apocalypse scheduled to occur at 2pm eastern time, 7pm UK.
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Tuesday, December 15, 2015
Share Buybacks just another Wall Street Scam / Stock-Markets / Stock Markets 2015
Better a diamond with a flaw than a pebble without one.
Chinese Proverb
Wall Street has a new hobby use good money to create the illusion that all is well; only unlike most hobbies, the intent is to distort reality and reward lazy insiders for doing next to nothing. Gone are the days of actually trying to improve the bottom line, by improving efficiency, find new markets, etc.; now the idea is simply cut the supply of outstanding shares, thereby magically boosting the EPS. Why are executives doing this with such impunity? The “safe harbor” rule passed in 1982, essentially allows corporations to repurchase shares without having to face charges of manipulating the price of their shares. Before the passage of this rule, stock repurchases were next to zero. In fact, Senators Elizabeth Warren and Tammy Baldwin both share the sentiment that stock buybacks should be forbidden by the SEC because they are a form of market manipulation.
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Tuesday, December 15, 2015
Stock Market Due for a Pop-n-Drop? / Stock-Markets / Stock Markets 2015
It appears that SPX may do a pop-n-drop that may be over by or near 10:00 am. The reason is that the decline from 2080.33 has taken 42 hours so far. 10:00 completes the 43rd hour.
I have additional conflicts today. A dear friend of mine died and his funeral is later this morning. I may not return to my office until later this afternoon.
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Tuesday, December 15, 2015
Dow Transports Re-Enters Stocks Bear Market, Caution Warranted / Stock-Markets / Stocks Bear Market
Arnold Toynbee “A Study of History”:
“Civilizations die by suicide not by murder”.
Very few people today know that between 1934 and 1961 the British historian Arnold Toynbee wrote “A Study of History” describing the rise and fall of the 23 civilizations he had identified in human history. In contrast to Oswald Spengler, who thought that the rise and fall of civilizations was inevitable, Toynbee maintained that the fate of civilizations is determined by their response to the challenges facing them. In fact the unifying theme throughout the book is challenge and response. One of the ground-breaking discoveries by Toynbee is the fact that there have been so many highly developed civilizations. Understandably in the West our history lessons focus on our own civilization with its roots in Greek and Roman cultures, but in addition there have been Chinese, Indian, Mayan, Islamic, Sumerian and Orthodox civilizations, to name but a few.
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Tuesday, December 15, 2015
Stock Market THREE is a number, Good or Bad, Well that Depends / Stock-Markets / Stock Markets 2015
Denali Guide writes:
Tuesday, December 15, 2015
Hybrid Lindsay Christmas Gift / Stock-Markets / Stock Markets 2015
My Hybrid Lindsay model calls for a low near last Friday (chart) and a high on Thursday, December 24. This matches typical option expiration behavior seen this year when equities tend to rally into OPEX (this Friday) and change trend soon after.
In addition, the McClellan Oscillator closed on Friday well below its lower Bollinger Band (200, 1.5). History has shown that a quick dip to just below the lower band usually results in a conclusion of the previous correction. However, a dip closer to negative 300 (as on Friday) often forecasts a lower low in equities (after a small bounce) or at least a test of that low.
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Tuesday, December 15, 2015
Stock Market Short-Term Bottom?....Fed On Deck.....Wild Wednesday Coming... / Stock-Markets / Stock Markets 2015
The market was up last night thanks to actions taken by the Chinese Government to get stock prices higher. We blasted up on the futures, with the S&P 500 not too far from being up 20 points at the top. Things were looking up big time for the market until reality caught up before the market opened for trading. The futures fell and went red, only to come back a bit. Once trading began, we saw a lot of fluctuations before heading lower, with a bit of force. Suddenly, and out of the blue, in a matter of seconds, the S&P 500 futures exploded nearly fifteen points, but then fell right back down again. My guess was that the fed was unhappy about losing 2020, and, thus, tried to get the market flying back up. It didn't work.
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Monday, December 14, 2015
Stocks Will Fall Anywhere From 17%-50% Depending on the Fed’s Response / Stock-Markets / Financial Crash
A major long-term momentum indicator is flashing, “sell.”
Based on the historical significance of this indicator we may be putting in a top and possibly THE top for the bull market that began 2009.
The indicator concerns the monthly moving average convergence divergence or MACD.
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Monday, December 14, 2015
Stock Market Game Changing Action / Stock-Markets / Stock Markets 2015
It appears as if the worm has finally turned for the equity markets. The S&P 500 recorded its largest weekly decline since August, and the broader risk markets took a beating. The price of Crude fell under $35 a barrel and high yield bonds took an absolute drubbing. Friday's big decline in equities was on extremely high volume - the highest in 6 weeks - and the volatility index (VIX) jumped 26% in its biggest one-day percentage increase of the year.
This past week's performance notwithstanding, we have been through enough face-ripping reversals in equities to know that, in the end, one move may prove meaningless to the broader trend. Volatility and reversals have been a characteristic of the 2015 market, so we need to consider the current action in that context. But if I can be so bold, I'd like to depart from my normal reliance on evidence to suggest that I have a "sense" that this time might be different for equities.
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Monday, December 14, 2015
Ten Market Investors Warning Signs for 2016 / Stock-Markets / Financial Markets 2016
Wall Street's proclivity to create serial equity bubbles off the back of cheap credit has once again set up the middle class for disaster. The warning signs of this next correction have now clearly manifested, but are being skillfully obfuscated and trivialized by financial institutions. Nevertheless, here are ten salient warning signs that astute investors should heed as we roll into 2016.
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Monday, December 14, 2015
Investors Learn that High Yield Funds are Not Piggy Banks / Stock-Markets / Financial Markets 2015
SPX is still challenging round number support at 2000.00. The Premarket shows SPX down, but not yet beneath 2000.00.
The tremors are getting bigger and more threatening as oil tumbles below $35.00 while emerging markets and junk bonds increase their turmoil.
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Monday, December 14, 2015
Stock Market Forecast: What Next for the S&P 500? / Stock-Markets / Stock Markets 2015
Ken Ticehurst writes: The S&P 500 fell last week towards what we think is more than likely support. As we close in on the end of the year it finds itself struggling to print a positive yearly close. We remain bullish the S&P 500 as our forecast shows, however we are cautious as we watch to see how this bull consolidation forms over the next few months.
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Monday, December 14, 2015
Stock Market New Downtrend or Just Another Pullback Within Two-Month Long Consolidation? / Stock-Markets / Stock Markets 2015
Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,060 and profit target at 1,900, S&P 500 index)
Our intraday outlook is bearish, and our short-term outlook is bearish:
Intraday outlook (next 24 hours): bearish
Short-term outlook (next 1-2 weeks): bearish
Medium-term outlook (next 1-3 months): bearish
Long-term outlook (next year): bullish